Unfortunate tragedies…

I was sitting around thinking about what I would write about next, when I received an unexpected e-mail. A former employer of mine who I now call friend, had disappeared off the face of the earth for the longest time! Lucky for me, he is one of the many employer’s I’ve had with great ambition and more importantly, a kind heart and great leadership. When I thought about him, I realized there is a lesson I can share with you that I learned vicariously from this great man.

A little trip back in time must be taken to share this with you. A few years ago, when I was still in University, I was hired to a great little socially responsible catering company. I say socially responsible because they had a division in the company that taught troubled kids how to become chefs and gain valuable skills to have a profession and stay away from trouble. This company had been started up by my former employer and his best friend.

Skipping all the in between, the catering company that was growing exponentially abruptly came to a halt. A bankruptcy claim was made and soon I was back to one job (I loved exploiting myself and working more than one job at a time while in school). I was puzzled and utterly confused. What had happened?

As we had become dear friends, my now ex-boss thoughtfully invited me for quick chat. He explained to me that his best friend and partner had been absconding company money behind his back for months! My former-boss who was a magnificent chef had been told by his best friend to deal with the cooking while he dealt with the administration side. Little did my poor boss know that while the growing company had worked hard to earn large and profitable contracts, his best friend had been purposely missing payments from every possible supplier, rental company, rent, contracts, etc.

My former boss had no other choice but to look for another job. Having spent much of his youthful years in his own catering company, he now had to compete with the younger chefs into finding a job that would be sufficient to cover his expenses. I was outraged and still to this day am quite angry at how such a terrible thing could happen to such a kind-hearted man.

The lesson is: The truth is that at work, you should consider your friend as a co-worker, and out of work, they can resume being just your friend. It is easy to forget that when you are doing business with a close friend yet alone a best friend or boyfriend/girlfriend. I know it sounds harsh, but I would not like anything like the above to happen to any of you. It doesn’t have to go as far as embezzlement but even being lazy, not accomplishing tasks that were required, and so on should not be tolerated because of their status in your social tree. Take care and good luck!

Learning to say no

When you start your own small business, a common mistake that most people do is taking whatever they can get.

A few days ago, a friend of a friend called asking for personalized robes. Her budget was almost unrealistic and it was obvious she was going for a cheap product rather than one with decent quality. The quantity she wanted was also ridiculously low! 15 units to be exact.

Being the request from a friend of a friend, I jumped at it and asked her the typical order processing questions. Sourcing the product within her price range was almost impossible. I have been debating buying them from certain low-quality stores just to fit her budget and required qualities. This would require me to drive to a store, buy 15 units, deliver the goods and take an almost non-existent margin.

It is time to say no. The truth is, although it is good to have always have orders keeping you occupied, all orders should be screened through the following formula: If amount charged is greater than amount paid including all expenses required to fulfill order, then it is a go.

Easy? Of course! Obvious? Yup! So why do you find so many small business owners taking on non-profitable purchase orders? It isn’t always so black and white when it stares you in the face.

You want to meet the expectations of friends and be known as reliable and helpful. However, remember that in business you have to assess if its worth your time. Be honest with your customers and lead them to a possible person that may carry them. In my case, she already had an alternative.

Remember, this ties into what was written last time. Don’t overwhelm yourself with things you may not have time for.